Equity, Debt or Assets? A New Lens for Looking at Raising Capital – Knowledge@Australian School of Business

Cash management good read.  Alternatives to weigh that may have long term ramifications.

Excerpt:  “Financing Through Asset Sales” probes the choice to issue equity or sell non-core assets such as a division or a plant. As a means of raising cash, under what conditions are asset sales or equity issues likely to add more value? Edmans, a Wharton finance professor and a faculty research fellow at the National Bureau of Economic Research, and Mann, a Wharton PhD candidate, have an answer.

They propose three forces behind decisions to sell equity or sell non-core assets, which they call the camouflage, correlation and certainty effects.

Read full article via Equity, Debt or Assets? A New Lens for Looking at Raising Capital – Knowledge@Australian School of Business.

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